Fino Payments Bank Pays Rs5.88 Lakh To Settle SEBI Case
Moneylife Digital Team 06 October 2025
Fino Payments Bank Ltd has paid Rs5.88 lakh to settle adjudication proceedings initiated by Securities and Exchange Board of India (SEBI) over alleged regulatory violations.
 
The proceedings were initiated for alleged violations of SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, including failure to make timely and complete disclosure of material events related to fraudulent activities by its employees.
 
SEBI had issued a chow-cause notice (SCN) to the Bank on 8 October 2024, following complaints regarding fraudulent investment schemes orchestrated by certain employees. The incidents were considered material, given the significant impact on the company’s share price and the findings of an investigation conducted by KPMG. Despite receiving the investigation report on 8 November 2023, Fino Payments Bank did not disclose the details within the 24-hour period mandated under SEBI regulations.
 
The Bank, through its authorised representatives, engaged with SEBI throughout the adjudication process, inspected relevant records and submitted written replies. 
 
Subsequently, Fino Payments Bank filed a settlement application under SEBI’s settlement regulations, proposing to resolve the matter without admitting or denying the alleged violations.
 
After review by SEBI internal committee and the high-powered advisory committee (HPAC), a settlement amount of Rs5.88 lakh was recommended and accepted. Fino Payments Bank remitted the payment on 16 September 2025. The settlement also included commitments from the Bank to strengthen its internal compliance framework and disclosure processes.
 
SEBI order disposing the proceedings was issued in August 2025 and came into effect immediately. The settlement does not prejudice SEBI’s right to take further action in case of non-compliance or discrepancies in disclosures.
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